The U.S. regulator CFTC is charging Jared J. Davis of Ohio with binary options fraud through the three entities he operated.
September 18, 2019, | AtoZ Markets - The Ohio-based operator of Option King, Option Queen, and Option Mint has been charged with fraud by U.S. authorities for allegedly defrauding investors through an elaborate binary options scheme.
CFTC charges Jared Davis over fraudulent binary options trading
The U.S. Commodity Futures Trading Commission (CFTC) has filed its complaint in the US District Court for the Northern District of Ohio against Jared Davis, charging him with fraud related to his global binary options business, which allegedly obtained at least US$10 million from customers in the U.S. and elsewhere.
The CFTC alleged that, between July 2012 and June 2016, Davis “fraudulently solicited and accepted” money from clients to trade off-exchange binary options on commodities and foreign currencies, among other things.
It also alleged that Davis defrauded customers by “failing to disclose that he effectively took the opposing position on each trade and therefore made money when customers lost money on trades,” and that he “frequently had the trading platforms manipulate the options trading software settings to increase the odds of customer losses.”
The allegations have not been proven.
Separately, the U.S. Attorney’s Office for the Northern District of Ohio charged Davis in a 22-count criminal indictment for conspiracy to commit wire fraud, conspiracy to launder money, wire fraud, money laundering, obstruction of justice, tax evasion and other crimes. Those charges also have not been proven. In addition to the criminal action, the U.S. Securities and Exchange Commission (SEC) charged Davis in a related enforcement action and entered into a partial settlement against him.
CFTC seeks full restitution to defrauded investors
In its case, the CFTC seeks full restitution to defrauded clients, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration, and trading bans. However, the CFTC cautions victims that restitution orders may not result in the recovery of money lost as the accused may not have sufficient funds or assets.
The US financial regulator is cracking down on fraudulent and misleading financial services operations in the country. Recently, it also brought charges against several executives related to the Yukon. The Isreali firm and its CEO Lee Elbaz were involved in a $145 million swindling case that defrauded over 75,000 investors.
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